Price per Sq. Ft.

[Beach Bound]

We are looking at a house in WaterColor Phase II across from the Camp District. The price will probably shake out at $347/sq. ft. Is this a good price in this market today? Do you think the prices are still headed down (much)?

 

[Smiling JOe]

Depends on the house. Houses in WaterColor may all look similar, but the construction quality and design is all over the place. I've seen some well-built homes, and some crap. For Ph II, specific location also plays a large roll in price/value. If you back up to green space, it is a better lot, in my opinion. However, if it backs up to 395 (which also has a touch of greenspace), it is less valuable. If the house is on the busy thru-road, the property is less desirable for many, therefore lower value.

I encourage you to forget about looking solely at price per sq ft, when the lot values and construction differ so greatly. Price per sq ft typically works well for condos in the same building, but for homes, there is so much more to consider.

Have you consulted your Realtor? Are they familiar with homes in WaterColor?

 

[ASH]

Good response SJ.
One other item to consider is why you are buying in the first place. If it is to be your personal get away for the rest of your life, your comfort and personal needs should dictate price.
If your plan is to turn this property in a set number of years, then the other factors SJ brought up need more consideration and SJ would know as a realtor.

 

[rehunter]

Sound advice from both SJ and ASH. Only you can truly answer your first question. What is a "good" price in this environment rests on your personal financial situation and the intended use of said property. Yes to your second question

 

[rapunzel]

That second question...that's the kicker. I know at one point there was a huge back log in the processing of foreclosures in Walton County. They were taking months to get into the system, more than a year to actually foreclose. Until the backlog of foreclosures is cleared, I don't think I'd feel confident the prices would level off soon. So, does anyone know if the foreclosures are still backlogged?

 

[Mango]

That second question...that's the kicker. I know at one point there was a huge back log in the processing of foreclosures in Walton County. They were taking months to get into the system, more than a year to actually foreclose. Until the backlog of foreclosures is cleared, I don't think I'd feel confident the prices would level off soon. So, does anyone know if the foreclosures are still backlogged?

I am not sure of the County status, with the exception of past a thread stating that there would be cutbacks, hence it would create a backlog. However, it seems banks are holding back from actually recording foreclosures which may have something to do with the stress tests and also renegotiation of rate. I do not think there is any telling how many will actually hit the courts or be for sale from taking deeds in lieu of foreclosure.

 

[Smiling JOe]

Holding back of the recording of the foreclosures, keeps the banks from having to come up with Doc Stamps ($$$) at the time of the take back.

The number of Lis Pendens recorded is a good indicator of what's coming in the way of foreclosures. Walton County had spikes in Feb and March, but is back down 33% for April (146), compared to March (219).

 

[melscuba]

Holding back of the recording of the foreclosures, keeps the banks from having to come up with Doc Stamps ($$$) at the time of the take back.

The number of Lis Pendens recorded is a good indicator of what's coming in the way of foreclosures. Walton County had spikes in Feb and March, but is back down 33% for April (146), compared to March (219).

What would be considered a "normal" number of Lis Pendens recorded in any given month?

 

[Smiling JOe]

Not sure, since there is no easy way of tracking them prior to Jan 2008, as far as I know. 150 seems to be more in the norm since that time, for Walton County. Click here, then open the pdf and scroll to the end to see the Lis Pendens monthly comparisons.